The NBA's new bargaining agreement with the union. No more 18 year olds!

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The NBA's new bargaining agreement with the union. No more 18 year olds!

The NBA and its players' association are close to agreeing on a new collective bargaining agreement that would institute a 19-year-old age limit, reduce contract lengths and raise the salary cap, sources close to both negotiating committees told ESPN.com on Monday night.

The potential agreement would run for six years and would allow the two sides to avoid a lockout on July 1.

NBA spokesperson Tim Frank told ESPN that the two negotiating committees were scheduled to meet again on Tuesday morning in New York.

A source close to the NBA negotiating committee and a source close to the players' association negotiation committee claim that all of the major issues between the two sides have been agreed to in principle, and the purpose of Tuesday's meeting is to work out some of the finer points of the agreement that weren't addressed during a lengthy breakthrough negotiation session Friday. Both sources asserted that none of the issues left on the table were major sticking points. If those issues can be worked out in a timely fashion, the two sides would be ready to announce a deal.

Union spokesperson Dan Wasserman declined comment on the story.

If a new agreement is reached soon, the players would have the opportunity to ratify it during a summer meeting on June 28th. It might take several more weeks for the final agreement to get drafted, possibly delaying the start of the free agent period scheduled to start July 1st.

The owners will have won several key concessions from the players, if the current proposal is agreed to, according to sources on both sides.

• A 19-year-old age limit would be implemented. Players who are not 19 by draft night would be ineligible to declare. Under current rules, American players are eligible for the draft the year their high school class graduates. Foreign players must be 18 by draft night. The new proposed age limit would bar most, but not all (Amare Stoudemire was already 19 when he was drafted), high school players from entering the draft.

• Contract lengths would be reduced one year. Currently, players can sign a fully guaranteed contract for a maximum of seven years if they re-sign with their current team. Players signing with a new team in free agency can sign a six-year deal. Under the new proposal, maxiumum contract lengths would shorten to five years for players signing with new teams and six years for players re-signing with their current team.

• Raises in contracts would be reduced. Under the current CBA, players are allowed maximum raises of 12.5 percent per year if they re-sign with their current team and 10 percent if they sign with a different team in free agency. Under the new proposal, raises would be reduced to 10 percent if a player re-signs with his current team and 8 percent if they sign with a different team in free agency.

• Teams would pick up an extra option year on rookie contracts. Currently, first-round picks are tied into a league salary scale. When a first-round pick signs a contract, the first three years are guaranteed, with a team option for the fourth year. Players are paid a set amount based on where they were selected in the draft. Under the new proposed rules, first-round picks would get the first two years of their contract guaranteed. The third and fourth years of the contract would be team options.

In return the owners would make the following concessions to the players if the current proposal is ratified:

• Total player salaries would be guaranteed. The proposed agreement guarantees that players receive a minimum of 57 percent of basketball-related income (BRI) in the form of salaries each year.

• Salary cap would rise. The current CBA bases the salary cap on basketball-related income (BRI). The cap is set at 48 percent of BRI. Last year, that came to $43.87 million. According to sources, the owners would agree to increase that percentage to 51 percent, in effect raising the salary cap. Sources say the cap would, in that case, rise to between $47 and $50 million next season.

• Escrow would be reduced and distribution of escrow moneys modified. Currently, players must pay 10 percent of their salaries into an escrow account each season. If, at season's end, the total amount of player salaries exceeds 57 percent of the league's total basketball-related income, that money goes to the owners whose teams stay below the luxury-tax threshold (and a few that fall within a certain "cliff threshold"). If it doesn't exceed 57 percent, the players get their money back. Under the proposed agreement, that number would be slowly fazed down to 8 percent by the end of the agreement.

There is potentially another significant development in this area. Under current rules, the NBA has sole discretion over the use of the escrow money. Currently, it redistributes the cash (and luxury tax revenues) to teams that are under the luxury tax threshold. In essence, Donald Sterling gets a bonus for being cheap. Under the new proposed agreement, distribution rules would be changed so that luxury tax revenues would now be distributed equally among all 30 teams.

• No super luxury tax. Owners had been pushing for a "super tax" for teams who exceed the salary cap by more than a certain percentage. They would be penalized $2 for every dollar they were over the tax threshold. However, the owners dropped their demand for a super tax under the newest proposal.

It wasn't about being the team everyone loved, it was about beating the teams everyone else loved.

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

• Escrow would be reduced and distribution of escrow moneys modified. Currently, players must pay 10 percent of their salaries into an escrow account each season. If, at season's end, the total amount of player salaries exceeds 57 percent of the league's total basketball-related income, that money goes to the owners whose teams stay below the luxury-tax threshold (and a few that fall within a certain "cliff threshold"). If it doesn't exceed 57 percent, the players get their money back. Under the proposed agreement, that number would be slowly fazed down to 8 percent by the end of the agreement.

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

I hope Steve Yzerman gets a "farewell" season. He's the most loved current athlete in Detroit, bar none.

I know...God knows he deserves it. I'm a Leafs fan, but grew up wearing the #19 idolizing Stevie. It doesn't matter what NHL team you follow - everyone loves the guy. All of my Wings friends have never watched a game where Yzerman didn't dawn the red and white, with the "C" on his chest.

I like to compare the whole situation to Reggie's this year...and I really hope Steve gets the same kind of farewell that Reggie did.

As for the new agreement, I like the reduced contract signings. I don't see such a big deal with the age limit - kids are still going to come out of high-school at age 19.

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

Damn. I was really hoping for 5/4, not 6/5. But, I shouldn't complain. 4/3 would have been a nightmare.

The age limit is a farce. It's gonna really hurt college basketball. Better to have it the way it is now than a constant revolving door of one-year players. If only Stern had gotten serious about the NBDL 5 years ago, none of this would be necessary.

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

Why should players have to be 19? Why can't High School ballers come to the NBA but can go to war? I find this ridiculous. How come no other sports have such things?

Jermaine O'Neal said it, it may have to do with race and culture.

It's one of the few things I agree with David Stern on. Teams that pick high school players that aren't ready for the NBA game yet take up a roster spot that a veteran player who is established in the league could use, forcing them to retire sometimes. It's not fair to the veteran or the team/fans. An age limit would help those players not quite ready for the NBA game if they went to college and developed.

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

Damn. I was really hoping for 5/4, not 6/5. But, I shouldn't complain. 4/3 would have been a nightmare.

The age limit is a farce. It's gonna really hurt college basketball. Better to have it the way it is now than a constant revolving door of one-year players. If only Stern had gotten serious about the NBDL 5 years ago, none of this would be necessary.

As an SU fan, I don't care. And I think quite a few HS players will find they aren't quite as NBA-ready as they thought, especially big men.

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

It's one of the few things I agree with David Stern on. Teams that pick high school players that aren't ready for the NBA game yet take up a roster spot that a veteran player who is established in the league could use, forcing them to retire sometimes. It's not fair to the veteran or the team/fans. An age limit would help those players not quite ready for the NBA game if they went to college and developed.

Also, if I'm not mistaken the NFL has some sort of age limit.

*edit* horrible grammar/typing

Football is the only game with an age limit but football is a much more physical sport. There is no age limit to hockey, baseball, etc.

I disagree that an age limit would help. Look at all the Superstars who have developed to players they are today who came from High School (J.O., McGrady, Kobe, Garnett, etc etc etc.). If they went to college, they could have had injuries that effected their NBA game resulting them in being underpaid or even result in career ending injuries. These high school ballers, many of them came from the hood and have played ball since they were young to get out of the ghetto. Why punish them with imposing an age limit?

That is why I say it may be a racial or cultural thing and I agree with Jermaine's sentiment. It may not be politically correct to use the "race card" but it sometimes is the truth. Why all this pressure for an age limit? It's a big issue and the Players Union shouldn't concede.

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

NBA vets with a few good years left (mostly black) are going to be able to keep their jobs one more year over raw rookies who aren't as good but will be in the future (mostly black).

Exactly what does race have to do with this?

That's exactly what I want to know. Why does anyone buy into this other than the fact a black man brought it up? I haven't yet heard from JO, or anyone who agrees with him, any evidence or explanation for why it's a racial matter.

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

i think it probably has more to do with the fact that only one white high schooler has ever been taken....all the others are blacks....though the league is more black than white, i think the last number i saw was high seventy percentile or something.....so this rule would seem to affect and inordinate amount of blacks....

this is typically the reason given when saying it is racially imbalanced....i think its more about it having a racial impact than it being racially motivated....there is a difference...

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

• Escrow would be reduced and distribution of escrow moneys modified. Currently, players must pay 10 percent of their salaries into an escrow account each season. If, at season's end, the total amount of player salaries exceeds 57 percent of the league's total basketball-related income, that money goes to the owners whose teams stay below the luxury-tax threshold (and a few that fall within a certain "cliff threshold"). If it doesn't exceed 57 percent, the players get their money back. Under the proposed agreement, that number would be slowly fazed down to 8 percent by the end of the agreement.

An "escrow" account simply means an account held by a third party. So every year the players put 10% of their salaries (like a tithe) into an account held by someone other than the NBA owners and the players. So someone like a lawyer, accounting firm, bank, or some entity like that. At the end of the year they compare the total amount of all players' salaries to the "Basketball Related Income" (BRI), which is a certain portion of the money generated by the league (the BRI includes things like ticket sales, television contracts, and league sponsorships, but I am not sure of exactly what all gets included). If 57% of the BRI (so a little more than half of all the money from ticket sales, the T.V. contracts, and the sponsors) is less than the total sum of all the players' salaries, then the owners get the money in the escrow account (the 10% of the players' salaries). If the 57% of the BRI is more than the players' salaries, then the players get the money in the escrow account (they get their 10% back). (Its basically an end of the year refund for the owners in case they payed the players' too much money).

Currently, if the owners get the escrow account (if 57% of the BRI is lower than the sum of all players' salaries) the money in that escrow account is spread out to only those teams that did not go over the luxury tax limit. Under the new agreement, the money would be spread evenly to all teams regardless of what your team spent on player contracts (which is what determines if it went over the luxury tax limit). So the new contract makes it so teams would no longer get rewarded for not spending money on players (since all teams get the escrow money and not just the cheap ones). Also, the league would slowely lower the amount of money the players put into the escrow account from 10% to 8% so the players would be losing less of their money.

--------------end of explination -------- begining of comment------

Of course that whole, "the cheap teams won't get rewarded anymore" is a certain point of view. If I remember correctly, the escrow account going to the teams that didn't break the luxury tax was justified by the reasoning that teams that COULD break the luxury tax were "generally" larger market teams and so the 10% return of player salaries was a revenue equity device. Of course it was definately abused be some larger market teams *cough* Clippers *cough* and I guess its revenue equitability is either outweighted by those who abuse it or it isn't much needed, or else there would be more of a fight to hold on to the system (or the less well off teams were out voted).

Re: The NBA's new bargaining agreement with the union. No more 18 year olds!

i think it probably has more to do with the fact that only one white high schooler has ever been taken....all the others are blacks....though the league is more black than white, i think the last number i saw was high seventy percentile or something.....so this rule would seem to affect and inordinate amount of blacks....

this is typically the reason given when saying it is racially imbalanced....i think its more about it having a racial impact than it being racially motivated....there is a difference...

....and we're conveniently overlooking all the young white euros that have been taken?

And they're saving jobs as much as they're denying them.

Frankly, I think a vet who's given 15 years to the NBA and still has a little left, deserves his job over a young kid that won't be able to cut it ANYWAY until he turns 20 or 21.

%95 of 18 year olds in the NBA don't belong there. Period. I'm willing to be the number of vets that lost their jobs were easily better than the players they were let go for.

It wasn't about being the team everyone loved, it was about beating the teams everyone else loved.